Question:
What is a post-tax strategy?
Answer:
A Post-tax strategy means that your product’s total will be calculated with tax included. This also means that your product’s customer-facing sale price, which displays within the SellTreez POS and your integrated eCommerce, will also be calculated.
Please also note: A post-tax strategy means that a product’s total will be the same whether the client is medical or adult use. Medical patients (Medical Regular and MMID) will not pay less than adult use patients. For example, with a post-tax strategy, if a product’s price is set to $100, the total price will be $100, whether the customer is a medical patient or an Adult-use client.
With post-tax enabled, the receipt subtotal of medical patients will be higher (larger profits for the retailer) than the same purchase for an adult-use patient because less tax is being applied to the subtotal.
Medical | MMIC | Adult-Use |
Excise 15% (.15)
Local 5% (.05)
Sales 9.5% (.095)
Total Tax = 29.5% (.295)
X = subtotal
X + .295X = $100
1.295X = $100
X = $77.22 | Excise 15% (.15)
Local 5% (.05)
Total Tax = 20% (.20)
X = subtotal
X + .20X = $100
1.20X = $100
X = $83.33 | Excise 15% (.15)
Local 10% (.10)
Sales 9.5% (.095)
Total Tax = 34.5% (.345)
X = subtotal
X + .345X = $100
1.345X = $100
X = $74.35 |
The subtotal is larger for medical patients because less tax is taken out. | Again, the subtotal is larger for medical patients because less tax is taken out. | Because more tax is taken out, the subtotal for AU customers is smaller. |
To use a post-tax strategy while still offering a discounted total to medical patients, medical discounts can be created.
Creating Medical Discounts
Medical discounts can be created as a Cashier Discount or an Automated Discount. Note: Always verify the regulations according to your state and jurisdiction before you create Medical Discounts.
Cashier Discount
Cashier discounts are required to be manually applied and can stack on top of each other. Two cashier discounts can be created:
one in the amount of the local tax for the Medical- Regular and MMID patient
one in the amount of Sales tax for MMID patients only
Follow the instructions here on how to begin creating your cashier discounts.
NOTE: If a separate non-stackable discount is available for a product, Treez will choose the best (highest $ amount) discount and apply it to the product, which will give the best discount for the customer. Please reference the Treez discount stacking rules.
Automated Discount
To remedy the post-tax cost to medical patients, you can create the following automated discounts:
Using the customer type condition, a discount giving both Medical-Regular & MMIC patients a discount equivalent to local taxes
Using the customer group condition, a discount giving MMIC patients a discount equivalent to sales tax
In applying both of these discounts, you are ensuring that
Medical -Regular patients are discounted from local tax
MMIC patients are discounted from local tax and sales tax
Customer Type Condition
Create a new discount
Discount Title: Medical-Regular
Percent Discount
% off should equate to the local tax being charged
Stackable
Using the customer type condition, select “Medical”. This means the discount will apply to both Medical-Regular and MMIC patients.
Customer Group Condition
Create a new discount
Discount Title: State-Medical
Percent Discount
% off should equate to the local tax being charged
Stackable
Using the customer group condition, select “MMID- Sales Tax Exempt”. This means the discount will apply to only MMIC patients.
Please also note: You will have to audit the group on a regular basis because MMID cards do expire.